By Manos Manousakis*

2023, which is drawing to a close, has affirmed a familiar truth: the impact of climate change requires the formulation, adoption, and implementation of policies addressing recurrent extreme phenomena, including temperature rise, desertification, water scarcity, and environmental pollution. We owe it to the future generations το slow down and ultimately reverse climate deregulation, making the green energy transition, contingent on the strengthening and expansion of electricity grids, an absolute priority.

To grasp the enormity of the challenges posed by the climate crisis and its ensuing phenomena, consider that in the summer of 2023, the Electricity Transmission System grappled with successive or simultaneous fires in Attica (Kouvaras, Dervenochoria), Corinthia (Loutraki), and Thrace.

During these natural disasters, a total of 1,400 switch operations were documented, with flames literally reaching beneath the Transmission Lines. Despite this, the system remained resilient, and the supply of electricity to the distribution network was uninterrupted.

Due to the climate crisis, we also faced unprecedented floods in Thessaly triggered by storms Daniel and Elias. These events led to the collapse of two pylons (400 and 150 kV). Again, the system demonstrated resilience and IPTO promptly restored the damages. However, we recognize that sustaining the reliable operation of the networks necessitates more investments and actions. This commitment is reflected not only in the EUR 200 million Asset Modernisation Programme which we are currently implementing and is due to be completed by 2026, but also in the flood protection measures for our substations and the integration of innovative technologies for the monitoring and maintenance of critical equipment.

However, the energy transition demands not only bolstering the resilience of networks but also expanding them. This reality has been acknowledged by the incoming Belgian EU Presidency, which has listed the increase of investments in the grids among its main priorities. This follows the Action Plan recently unveiled by the European Commission, which recognizes that grids are the “missing link” of the transition. The Plan delineates specific actions and incentives to secure the estimated €600 billion investment required by the end of the decade to achieve the EU’s climate targets.

To meet the ambitious European and international targets, it is imperative to invest in both national networks and cross-border and trans-continental electricity interconnections. These investments will facilitate the optimal utilization of green energy across diverse geographical areas and climate zones.

The role of IPTO

In this regard, IPTO has a pivotal role to play, as it spearheads projects contributing not only to the increased integration of Renewable Energy Sources (RES) in the country’s energy mix, now nearing 50%, but also advancing a key objective of the national energy strategy: transforming Greece into a green energy exporter to Central Europe. This will be achieved through the implementation of cross -border interconnections designed to export surplus electricity generated within the country. Notably, this initiative aligns with the plan to develop 2 GW of Offshore Wind Farms by the end of the decade, capitalizing on the substantial and continuous interest in renewable energy investment that surpasses domestic demand.

At the heart of this plan is the Greece-Cyprus-Israel interconnection, with IPTO having recently assumed the role of the project promoter through its special purpose vehicle, the Great Sea Interconnector.

Notably, during COP28, IPTO signed a Memorandum of Understanding (MoU) with the Ministry of Energy, Trade, and Industry of Cyprus and the Abu Dhabi -based fund TAQA for their potential participation in the project. We have also signed a preliminary agreement with Israeli fund Aluma. Furthermore, funds from the USA and other countries have expressed interest in the project.

These developments are tangible proof for the investor interest after IPTO assumed the role of project promoter of the Great Sea Interconnector. Given its proven expertise and robust financial profile, IPTO is well positioned to execute this highly demanding project efficiently. Construction is slated to commence in 2024.

Given our emphasis on export interconnections, we are maturing a second High Voltage Direct Current (HVDC) interconnection with Italy with a capacity of 1000 MW, which triple the electricity transmission capacity between the two countries. Additionally, the recently completed second interconnection with Bulgaria and the planned second interconnection with Albania align with this overarching strategy.

Simultaneously, we are exploring the feasibility of establishing a direct electricity corridor with Central Europe. South Germany stands out as the ideal endpoint for this corridor, due to its robust electricity system and significant demand for green energy.

The Green Aegean Interconnector, as the Greece-South Germany corridor is called, has significant synergies with the Greece-Egypt interconnection (project GREGY, implemented by Elica of the Copelouzos Group), in which we are actively engaged. Furthermore, it aligns with a visionary project, whose planning we have recently initiated: the electrical interconnection with Saudi Arabia, referred to as the Saudi Greek Interconnection. To facilitate this endeavor, we are in the process of establishing a special purpose company jointly with the Saudi Transmission System Operator, National Grid, who expressed its keen interest in the project during the recent Arab-Hellenic Chamber’s Economic Forum held in Athens.

These projects play a crucial role in promoting not only Europe’s energy transition but also its energy independence from Russia and the exploration of new energy suppliers—a key objective of REPower EU.

As we enter 2024, it becomes imperative to expedite the transition to the clean energy era. It is essential to underscore that the journey of the green transition may pose challenges, yet it is a one-way street, a path that cannot and should not be reversed.

*Mr. Manos Manousakis is the Chairman and CEO of Independent Power Transmission Operator (IPTO).